Profit for Asian stocks thanks to fresh trading girls, China shares fall by Reuters
By Tomo Uetake
TOKYO (Reuters) – Asian stocks rose on Friday, aided by Wall Street's rally, but fresh concerns about Sino-American trade ties thanks to gains in the region.
Heavy of risk conditions was a report from Bloomberg that Washington is delaying a US licensing decision to start trading with Huawei Technologies [HWT.UL].
It sent US stock futures down to as much as 0.6% in Asian trading.
Pan-European fell 0.2% in late Asian trading, indicating that European cash-share markets will open slightly lower on Friday.
MSCI's broadest index of Asia-Pacific shares outside Japan was 0.2% higher, but on track to lose 2.3% for the week. [1[ads1]9659002] Japan's average rose 0.4%, while Australian stocks added 0.3% and South Korean stocks climbed 1.1%.
Early gains on Chinese stocks were erased after data showed that the country's producer prices fell for the first time in three years in July, while a sell-off in high-profile tea and tech companies already dampened fragile sentiment.
The reference and blue chip CSI300 were down 0.8% and 1.0% respectively, while Hong Kongs eased 0.2%.
On Wall Street Thursday, the S&P 500 rose 1.9% – the biggest one-day gain in about two months – while Nasdaq also advanced well above 1%. ()
However, optimism was pushed by the Bloomberg Report, which raised concerns that deterioration in US-China relations could put an additional strain on an already fragile global economy.
"The news about Huawei triggered the yen rise," said Junichi Ishikawa, senior currency strategist at IG Securities. "This is a reminder that the US-China trade conflict is still a risk and that this risk is not reversible."
The yen strengthened as much as 0.4% against the dollar to 105.70 yen on concerns triggered by the Huawei report.
US data pointed to a robust labor market as the number of Americans filing for unemployment benefits unexpectedly dropped last week, prompting some concerns about a recession and helping government rates rise.
Benchmark closed 2.4 basis points higher at 1.715% after hitting 1.595% on Wednesday, which was the lowest level since October 2016. It last noted 1.698%.
But others were anxious about the prospect.
"Concerns about trade war and foreign exchange policy will keep market volatility elevated. Various central banks this week stressed that US-China confrontations are problems not only for the two economies, but for the whole world," said Yoshinori Shigemi, global market strategist at JPMorgan ( NYSE 🙂 Asset Management.
"About a month ago, I had a feeling that the global economy could pick up later this year, but now there is the risk of downward recession, increasing the chance of a recession."
It was stable towards the dollar, even after China's central bank, set the yuan's daily midpoint at 7.0136 per dollar, the weakest level since April 2, 2008.
The currency gained 7.0505 per dollar in land trading, while the offshore yuan traded 7.0767, steady on the day.
But traders continued to pay close attention to headlines from the US and China to find out Beijing and Washington's next move in their bruises. "
" The US-China trade war is very serious. My hope is that the US and China can find enough to agree, so that they can contain the push-and-shove that occurs when the emerging power meets the dominant power. The alternative is not pleasant, "said veteran investor Dan Fuss, Loomis Sayles deputy.
The one, which measures the greenback versus a basket of six major currencies, was little changed at 97,541, but in route to its biggest weekly decline since late June.
Sterling briefly hit its two-year low against the euro overnight after the Financial Times reported that Prime Minister Boris Johnson was preparing to hold an election in the days following Brexit.
The pound was last quoted at 92.21 pence per euro, down 0.1% on the day, and traded against the dollar at $ 1.2138, steady on the day.
In commodity markets on Friday, oil prices gave up some of the past's outstanding gains, but expectations of more production cuts from OPEC were expected to underlie prices.
declined 0.1% to $ 57.32 per barrel, and US West Texas Intermediate (WTI) crude oil decreased 0.1% to $ 52.50.
held close to more than six years peak affected Wednesday, rising 0.5% to $ 1,507.66 per ounce while investors continued to seek the safety of precious metal.
